{"id":79211,"date":"2020-05-19T08:06:31","date_gmt":"2020-05-19T08:06:31","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/sodra-sees-supply-demand-fall-due-outbreak-covid-19\/"},"modified":"2025-09-19T08:53:18","modified_gmt":"2025-09-19T08:53:18","slug":"sodra-sees-supply-demand-fall-due-outbreak-covid-19","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/sodra-sees-supply-demand-fall-due-outbreak-covid-19\/","title":{"rendered":"S\u00f6dra sees supply and demand fall due to the outbreak of COVID-19"},"content":{"rendered":"

Despite dramatically changed conditions in the wake of the COVID-19 pandemic, production rates at S\u00f6dra\u2019s facilities remained high and stable in the first quarter. Sales amounted to SEK 5,576 million (6,318). Operating profit for the quarter totalled SEK 227 million (1,148). At the end of the quarter, cash and cash equivalents and current investments amounted to SEK 2,627 million (1,527) and the equity ratio was 60 percent.<\/em><\/p>\n

\"\"<\/a>\u201cIn the wake of the ongoing global spread of COVID-19, conditions changed dramatically towards the end of the first quarter. S\u00f6dra has taken a number of steps to protect our employees, customers and suppliers in the first instance, but also any others that we come into contact with in order to save lives and protect health. It is with great gratitude that I see how we are working together to slow the spread of the virus and to mitigate the negative effects of the ongoing crisis,\u201d said Peter Karlsson, Interim President and CEO (in the left photo).<\/p>\n

\u201cThe economic slowdown from 2019 was replaced by a general decline in supply and demand due to the outbreak of COVID-19, and the consequences are difficult to predict at present. Nonetheless, the first quarter result was in line with expectations. Net sales amounted to SEK 5,576 million (6,318) and operating profit totalled SEK 227 million (1,148),\u201d said Karlsson. \u201cDemand for S\u00f6dra\u2019s core products was favourable, although prices for paper pulp and sawn timber remained low during the quarter, albeit slightly higher at the end of the quarter compared with the beginning of the year.\u201d<\/p>\n

\u201cThe necessary adjustment to these changed market conditions has been handled impressively by all employees in our respective operations. Without this commitment, we would not be so well-equipped to meet the future,\u201d said Karlsson. \u201cSo, although the global economy is now slowing down, it is important that we maintain a long-term approach. Economic cycles will always cause market conditions to fluctuate, but in the long run, there is an underlying and steadily rising demand for forest-based products,\u201d Karlsson concluded.<\/p>\n

During the first quarter, consolidated net sales amounted to SEK 5,576 million (6,318), down 12 percent year-on-year. Operating profit totalled SEK 227 million (1,148) and the decline in profitability was due to lower price levels for paper pulp and sawn timber. The result corresponds to an operating margin of 4 percent (18). Return on capital employed was 4 percent (22). At the end of the quarter, cash and cash equivalents and current investments amounted to SEK 2,627 million (1,527) and the equity ratio was 60 percent.<\/p>\n

S\u00f6dra Skog<\/strong>\u2019s operating profit for the period totalled SEK 1 million (56). The result was due to weaker margins. During the period, S\u00f6dra Skog acquired 4.9 million m\u00b3sub, comprising 54 percent pulpwood and cellulose chips, 32 percent saw logs and 14 percent biofuels.<\/p>\n

S\u00f6dra Wood<\/strong>\u2019s operating profit for the period totalled SEK 22 million (147) and reflects the considerably lower price formation for sawn timber. Underlying demand for sawn timber also remained favourable. Sales for the quarter amounted to SEK 1,507 million (1,498). The delivery volume from S\u00f6dra Wood rose to 519 km\u00b3 SW, compared with 476 km\u00b3 SW in the year-earlier period.<\/p>\n

S\u00f6dra Cell<\/strong>\u2019s operating profit for the period totalled SEK 302 million (1,112). The earnings decline was due to a weaker price level, while higher volumes and a more favourable USD exchange rate had a positive impact. Sales for the quarter amounted to SEK 2,867 million (3,501). The production volume totalled 474 ktonnes, comprising 402 ktonnes of softwood sulphate pulp, 34 ktonnes of hardwood sulphate pulp and 38 ktonnes of dissolving pulp.<\/p>","protected":false},"excerpt":{"rendered":"

Despite dramatically changed conditions in the wake of the COVID-19 pandemic, production rates at S\u00f6dra\u2019s facilities remained high and stable in the first quarter. Sales amounted to SEK 5,576 million (6,318). Operating profit for the quarter totalled SEK 227 million … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716],"tags":[4334,3766,3358],"class_list":["post-79211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","tag-covid-19","tag-financial-results","tag-sodra","topic-forestry","topic-pulp-paper","topic-sawmilling","area-europe"],"acf":[],"yoast_head":"\nS\u00f6dra sees supply and demand fall due to the outbreak of COVID-19 - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/sodra-sees-supply-demand-fall-due-outbreak-covid-19\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"S\u00f6dra sees supply and demand fall due to the outbreak of COVID-19 - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Despite dramatically changed conditions in the wake of the COVID-19 pandemic, production rates at S\u00f6dra\u2019s facilities remained high and stable in the first quarter. 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